Transcript of IMF Press Briefing
IMF News, March 23, 2023
Source details
- Canonical URL
- Transcript of IMF Press Briefing
Other formats
Bibliographic details
- Published: March 23, 2023
Announcements and schedule
- Managing Director Kristalina Georgieva and Deputy Managing Director Bo Li will travel to China from March 24 through 30.
- MD will deliver a keynote speech at the China Development Forum in Beijing on March 26 and speak at the Boao Forum for Asia Annual Conference 2023 on March 30; DMD Bo Li will join panel discussions at the Boao Forum for Asia.
- Spring Meetings will take place between April 10 and 16.
- Flagship analytical chapters for the WEO, the GFSR, and the Fiscal Monitor will be released during the week of April 3.
- On April 6 the MD will give her curtain raiser ahead of the Spring Meetings at the Meridian House in Washington, D.C.
Financial sector / banking stress
- Rapid policy action has included coordinated action by major central banks to enhance the provision of U.S. dollar liquidity.
- These actions have eased market stress to some extent, but uncertainty remains high and continued vigilance is warranted.
- IMF staff are monitoring developments closely and will include a detailed assessment of developments and implications for global financial stability and the global economic outlook in the upcoming April GFSR and WEO.
- Stress tests and broader financial stability implications will be discussed by subject matter experts at the forthcoming flagship releases and press conferences.
Ukraine program
- Staff level agreement reached on a set of macroeconomic and financial policies to be supported by a new four year EFF arrangement.
- The EFF will have requested access of about $15.6 billion.
- Program aims: anchor policies that sustain fiscal, external, price, and financial stability; promote long-term growth in the context of post war reconstruction and Ukraine's path to EU accession.
- Staff level agreement is expected to help mobilize large scale concessional financing from Ukraine's international donors and partners.
- IMF expects the Executive Board meeting to take place in the coming weeks.
Sri Lanka program
- IMF Board approved a 48 month EFF arrangement for Sri Lanka of about $3 billion.
- Program priorities: ambitious revenue based fiscal consolidation; restoration of debt sustainability; multi-pronged strategy to restore price stability; rebuild reserves under greater exchange rate flexibility; safeguard financial sector stability; structural reforms to address corruption vulnerabilities and to enhance growth.
- Program envisages mitigation of the economic impact on the poor and vulnerable through strengthened social safety nets, including a minimum spending floor and well targeted spending through a new social registry.
- Implementation risks mitigated by: strong economic reforms supported by a wide range of this society (including business community and opposition in parliament); upfront critical measures on revenue, cost recovery energy pricing, and social safety nets; extensive capacity development support from the IMF and development partners.
- IMF is engaging with creditors via the Global Sovereign Debt Roundtable, with deputies meeting in early April and a principals meeting on the sidelines of the Spring Meetings.
Argentina
- On March 13 the Argentine authorities and IMF staff reached staff level agreement on the Fourth Review of Argentina's program.
- Upon completion of the Review by the Executive Board, Argentina will have access to about $5.3 billion.
- Prudent macroeconomic management in H2 2022 supported stability and helped secure program targets through end 2022 with some margin.
- Against a more challenging backdrop, particularly an increasingly severe drought, stronger policy actions are necessary to safeguard stability and address rising inflation and policy setbacks.
- Board meeting expected to take place relatively soon, in line with the regular quarterly cycle of reviews.
- IMF is assessing the government's recent decision on debt in accordance with program objectives; prudent debt management is necessary and must be conducted in a manner that does not add to vulnerabilities and should be accompanied by tight and consistent macroeconomic policies.
China outlook and MD visit
- IMF projects real GDP growth in China to increase from 3 percent in 2022 to 5.2 percent in 2023, driven by private consumption and reflecting the reopening beginning in December of 2022.
- Managing Director will be in China from March 25th through 30th, participating in the China Development Forum and the Boao Forum for Asia, giving keynote addresses at both events, meeting Chinese authorities to exchange views on global and domestic economic outlooks, and discussing collaboration on global challenges.
Egypt
- IMF approved a four-year EFF with Egypt for $3 billion in December, 2022.
- Preparations for the first review have started; dates for the first review mission will be announced when agreed with the authorities.
Tunisia
- On October 15th, 2022, IMF staff and Tunisian authorities reached a staff level agreement to support Tunisia's economic policies with a four-year EFF arrangement worth about 1.9 billion US dollars.
- Program aims: restore macroeconomic stability, strengthen social safety nets and tax equity, step up reforms, and support inclusive growth and sustainable job creation.
- Presentation to the IMF Executive Board postponed to give Tunisian authorities more time to complete requisites; a new Board date will be set in consultation with the authorities.
- IMF remains engaged to support efforts to enhance social equity and promote inclusive growth.
Ghana
- On December 12th, 2022, IMF reached a staff level agreement with Ghana on a three-year program supported by an arrangement under the ECF worth about $3 billion.
- Ghana also requested a debt treatment under the G20 Common Framework.
- Financing assurances from partners and creditors are necessary for presenting the program request to the IMF's Executive Board.
- IMF calls on bilateral creditors to support Ghana's effort to restore debt sustainability, form an official creditor committee, and deliver necessary financing assurances as soon as possible.
- Program aims: restore macroeconomic stability and debt sustainability, protect the vulnerable, preserve financial stability, and lay the foundation for strong and inclusive growth.
Ethiopia
- IMF welcomes progress toward restoring lasting peace and stability through the Cessation of Hostilities Agreement; implementation has progressed including restoration of humanitarian assistance and basic services in Tigre.
- IMF staff have ongoing discussions with authorities on reform plans and received a request for financial assistance; technical work is underway to prepare for a potential program discussion.
- Ethiopia faces multiple shocks: six consecutive years of drought, the Covid-19 pandemic, domestic conflict, and the impact of Russia's war against Ukraine, resulting in food insecurity, humanitarian needs, inflation, and foreign exchange shortages.
Zambia
- On August 31st, 2022, the IMF Board approved a 1.3 billion 38-month ECF arrangement for Zambia.
- Zambia has made progress: significantly reducing the fiscal deficit and increasing social spending in 2022; steps to strengthen public financial management and governance.
- Zambia needs significant reduction in its debt burden from external creditors to complement reforms.
- IMF team conducting the first review under the ECF and an Article IV consultation from March 22nd to April 5th in Lusaka to remove hurdles to timely consideration by the Executive Board.
- IMF urges official creditors to move forward and reach agreement on a debt treatment in line with financing assurances provided in July, 2022.
- Global Sovereign Debt Roundtable seen as a constructive forum to improve process and procedures for debt restructuring.
Pakistan
- Pakistan faces slowing growth, high inflation, large financing needs, and impacts from devastating floods.
- Discussions between IMF staff and Pakistani authorities are ongoing toward a Staff Level Agreement to complete the ninth review of Pakistan's EFF.
- Authorities have taken decisive actions to stabilize the economy and restore confidence while increasing social assistance through the Benazir Income Support Program to cushion flood impacts.
- Timely financial assistance from external partners and financing assurances from multilateral institutions and bilateral partners (including the World Bank, the ADB, the AIIB, China, Saudi Arabia, and the UAE) are critical for successful completion of the review.
IMF role and policy messages
- IMF encourages countries to come early and preemptively to seek IMF support to mitigate problems before distress deepens.
- IMF is dedicated to supporting the most vulnerable countries facing multiple shocks and stands ready to provide financial assistance and policy support.
- Upcoming WEO and GFSR releases will present detailed assessments and policy implications on recent market developments and financial stability.
Transcript of IMF Press Briefing — March 23, 2023; IMF Communications Department